Delivery and insurance for online transactions

If they go ahead then it is still their responsibility to ensure the goods get to the buyer. So if you don’t get insurance and the item is lost in transit, the buyer can still make a claim against you.

Neither party should make any assumption about who will pay for the insurance. The buyer should always confirm details with the seller before money changes hands.

Choose a delivery method
This will always be a personal choice. But the savvy seller should always choose an option that gives them the best protection.

Although there are a number of options and companies, such as Parcel Force, TNT, UPS and so on, Royal Mail is usually the most affordable service for both sole traders and private individuals.

If the item is small and worth no more than £36, the cover provided by first or second-class post should be sufficient.

If you want to know that something has arrived, then Recorded Signed-for delivery offers the same amount of compensation with proof that the goods have been signed for; this helps when there is a dispute about delivery.

Royal Mail’s Standard Parcels service takes packages up to 1.5m long and up to 20kg in weight.
As with the previously mentioned services the basic compensation cover included in the postage prices is £36, but additional compensation up to £500 can be bought, starting at £1 for an additional £100.

This is a service commonly used by Ebay sellers, however many sole traders break the law by adding this cost to the buyer’s bill.

If an item is more valuable then Special Delivery offers compensation up to £2,500. This should also give a guaranteed next-day delivery service, and the seller and buyer can also use Royal Mail’s Track and Trace system to provide electronic proof of delivery.

If goods go missing?
If an item has gone missing then the seller should not expect the buyer to make any insurance claim. In law, it is the seller who has physically paid for the parcel service and will have confirmation of postage.

This fact applies whether the seller is a sole trader or private individual. There are occasions when the buyer can make a claim, but the seller has to provide the buyer with the proof of postage.